Bharat Forge hits record high, up 4% on improvement in North American class 8 truck orders

Moneycontrol News

Bharat Forge share price touched a fresh record high of Rs 722, rising 3.75 percent intraday Friday, following sharp improvement in North American class 8 truck orders.

The improvement in truck orders has been continued for the fifth consecutive month in September.

At 10:19 hours IST, the stock price was quoting at Rs 710.90, up Rs 15.05, or 2.16 percent on the BSE.

FTR in its release said preliminary North American Class 8 net orders for October stood at 35,700 units, continuing month-on-month increase of 62 percent versus September and 167 percent above a year ago.

FTR further said orders are set to rise due to strong freight demand & jump in US economy. Digitisation in the transportation sector in US is aiding Class 8 trucks, it added.

US business contributed 23 percent and commercial vehicle business constituted more than 50 percent to Bharat Forge's FY17 total revenue. Passenger vehicle segment contribution was 19 percent.

The flagship company of USD 2.5 billion Kalyani Group is going to announce its September quarter earnings on November 8, 2017.

Share prices MM Forgings, GNA Axles and Ramkrishna Forgings, which are other suppliers to the US market, also gained 3-4 percent.